The Financial institution of Ghana (BoG) has accomplished a draft doc on local weather danger evaluation to be issued to the business banks working within the nation.
This directive is predicted to information banks and different deposit taking establishments on tips on how to asses catastrophe and different local weather danger elements throughout acquisition of loans.
Director of Sustainability on the Supervision Division of the Financial institution of Ghana, Stephen Armah disclosed this throughout an interplay with Small and Medium Enterprise Companies on the Absa SME clinic in commemoration of this yr’s world MSME day underneath the theme; adopting ESG practices for enterprise development.
“This Directive units out the supervisory expectations for stakeholders in relation to the method to administration and disclosure of climate-related monetary dangers
with a deal with company governance, inside management framework, evaluation of adequacy of capital and liquidity, danger administration course of, administration monitoring and reporting, complete administration of particular monetary dangers, state of affairs evaluation and disclosures” he famous.
On the identical occasion, interim Managing Director for Absa Financial institution, Adolph Kpegah assured SMEs that the financial institution will proceed to supply such platforms because the SME clinic to help information sharing on their enterprise development.
The occasion underscores the financial institution’s dedication to selling sustainable enterprise practices inside the SME sector.
The clinic aimed to teach SME homeowners on the significance and advantages of integrating environmental, social and governance practices into their operations.
Financial institution of Ghana (BOG) acknowledges that Regulated Monetary Establishments (RFIs)
In Ghana are doubtlessly uncovered to climate-related monetary dangers no matter their measurement, complexity or enterprise mannequin, and that climate-related monetary danger drivers can translate into conventional monetary danger classes together with: credit score, market, liquidity, and operational dangers. Based on the draft doc,
RFIs shall due to this fact take into account the potential impacts of climate-related danger drivers
On their particular person enterprise fashions and assess the monetary materiality of those dangers.
RFIs in Ghana are additionally anticipated to handle their climate-related monetary dangers in a way that’s proportional to the character, scale and complexity of their actions and the general degree of danger that it’s prepared and capable of settle for.
The purpose of this Directive is to reinforce the administration of climate-related monetary dangers by RFIs and, consequently, contribute to a extra resilient monetary system in Ghana that may successfully contribute to sustainable